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Sounding the alarm

Major employers warn Congress that debt undercuts growth

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The out-of-control fiscal situation of the federal government is like the weather: Everyone
complains about it, but no one does anything about it.

With the national debt at $16 trillion and the economy still lagging, a group of more than 80
major-company CEOs has taken the unusual step of signing onto a statement urging Congress to reduce
the debt. The executives — representing companies ranging from AT&T to Goldman, Sachs to Macy’s
— say they back a solution that takes into account spending cuts and tax increases, though they
emphasize that serious cuts must be made before taxes are raised.

What these leaders are telling Congress is important, because they’re the ones who will drive
job growth and prosperity in America. But they need some help from the government in terms of sound
policy and stability.

The business leaders, many of whom have not been politically active in the past, say they’ve
been motivated to back this effort out of sheer disbelief at the inaction in Washington. Company
leaders have to plan years in advance, and have become increasingly frustrated with the
seat-of-the-pants, partisan process in the nation’s capital.

Speaking of last year’s political showdown over the federal debt ceiling, Motorola Solutions’
Greg Brown told the
Wall Street Journal: “The business community was stunned that Washington let it go that
far. Part of the reason for uniting behind this effort is that we wanted to highlight that we don’t
want a repeat of those political theatrics.”

The effort is part of the Fix the Debt campaign, a bipartisan effort modeled around the
recommendations of Alan Simpson, a Republican, and Erskine Bowles, a Democrat, who headed the 2010
Simpson-Bowles Commission charged with recommending ways to reduce the federal debt. Their
proposals were not acted on by President Barack Obama, who promised before taking office to tackle
the debt problem.

Republican presidential contender Mitt Romney has vowed not to raise taxes, but says his plan to
simplify the tax code and reduce loopholes would result in more revenue.

To their credit, the CEOs seem to be taking a broad, nonpartisan view of the issue, something
seldom seen in national politics these days. Many seem to believe in Henry Ford’s famous saying
that the business of America is business; Washington can either be a help or an impediment.
Lawmakers should heed the call, and come together for the good of the country no matter who wins
next week’s election.